How to get a Loan for Unregistered Business in Nigeria

How to get a Loan for Unregistered Business in Nigeria

August 12, 2021 0

Do you have an unregistered business in Nigeria and you need a quick loan? Many small businesses sometimes require additional cash or capital in the form of business loans to expand or stay afloat. When all other options for obtaining capital for your firm have been exhausted, acquiring a business loan may be the best option. However, many small business owners consider the lending procedure difficult and irritating, particularly when asking banks for funding.

It is a well-known reality that most business ideas never make it to market, owing to a lack of funding. The inability to obtain the necessary finances to start or sustain a business is the most significant difficulty most entrepreneurs face in Nigeria and around the world. While the presence of finances does not ensure a successful business venture, a lack of funds will almost surely lead to failure.

Your business may not need to be registered with the Corporate Affairs Commission (CAC) to qualify for a loan, depending on the loan you’re looking for. Thanks to the Fintech industry’s growth in Nigeria, you can obtain loans for your unregistered business online without a need to visit a physical office.

According to the credit facility or funding program requirements in question, your company’s appropriateness and loan purpose would be evaluated. Funds will be advanced to you if you are authorized for financing, according to the terms of any approval letter.

Loans for Unregistered Business in Nigeria

Nigeria has an underdeveloped capital market, and as such, loans play a critical role in fueling the economy. As a result of high-interest rates, tight paperwork requirements, short loan maturities, and the inability to provide collateral, traditional lenders’ loans in Nigeria are strained for poor financial gain and freelance customers. The following are five ways to access loans for unregistered businesses in Nigeria today: 

How to get a loan for unregistered business in Nigeria
There are several loans for unregistered business in Nigeria

C24 Limited 

C24 Limited is a microfinance institution that was founded with the sole purpose of assisting people to obtain loans. This platform is a moneylender that offers retail loans to customers in need of immediate cash. The lowest loan amount is N40,000, with a maximum loan value of N750,000 for new consumers. Existing customers can get as much as N1,000,000. Both are dependent on the borrower’s ability to repay, which is determined primarily by an applicant’s verified source of income.

C24 recognizes the demand for quick cash loans and the need to obtain a faster loan processing time. Their internet loan application process has been optimized to help candidates escape the stress of dealing with other lenders. The following are the only prerequisites for their company loan:

  1. Recent passport photograph.
  2. A formal loan application on letterhead.
  3. Your cheque leaves (repayments and signature verification) for loans above #200,000.
  4. Signed direct debit mandate form.
  5. Recent utility bill.
  6. Means of identification.
  7. Rent receipt and rent/lease agreement.
  8. Signed letter of authority to print bank statement.
  9. Signed letter of undertaking for the dishonor of postponed cheque.
  10. All pages of the initial offer letter

You can go right ahead and apply here.

QuickCheck

QuickCheck is a cutting-edge lending platform that caters to both consumers and small businesses. It makes financial financing available to consumers and small enterprises through mobile technologies. QuickCheck is a famous loan platform in Nigeria that provides loans to Nigerians without the need for collateral. After an applicant has downloaded and installed the mobile app, loans can be simply dispensed. Their loan app is currently being utilized by over 100,000 people and has received much positive feedback.

You can borrow anywhere from $1,500 and $500,000. However, you will be unable to borrow large sums on your first attempt. You borrow a tiny amount, and when you repay it, you are given a larger offer the next time. According to the platform, users can access quick and hassle-free loans of up to 30,000 Naira without any collateral for a duration of either 15 or 30 days. The following are the requirement to get a loan for your unregistered business in Nigeria from QuickCheck:

  1. Bank account details
  2. Bank Verification Number (BVN)
  3. Good credit score
  4. ATM card
  5. Personal information (such as your name, address, and so on)
  6. Employment details (self-employed or an entrepreneur can apply)
  7. You must be an adult
  8. A mobile phone with data

Carbon (formerly Paylater)

Carbon (previously Paylater) is a simple and fully online lending platform that helps individuals and small businesses in Nigeria meet unexpected bills or urgent cash demands. This platform allows you to borrow up to N1,000,000 and repay it over a maximum of 64 weeks. Funds are usually sent within 1–3 business days after your application is approved.

Making on-time repayments with Carbon can help you get greater credit limits on your future loan. Interest ranges from 1.75% – 30%, with an equivalent monthly interest rate of 1 – 21%. Annual Percentage Rate (APR) from 23% – 60.8%. No late fees or processing costs. The implication is that for a 3-month loan of ₦50,000, Carbon charges 2% a month. With an APR of 24.3%, the total repayment amount after 90 days is ₦53,000.

Aella Credit

Aella Credit is another easy way to get a loan for unregistered businesses in Africa. The organization, which focuses on employee financing and empowerment, has partnered with three major credit bureaus in Nigeria to give customers rapid and affordable loans that require no paperwork.

Aella Credit determines its consumers’ creditworthiness using a unique credit scoring system. The algorithm, which was developed after the team gathered over five years of market data and analysis, considers socioeconomic and demographic characteristics and a borrower’s debt-to-income ratio when determining an applicant’s loan eligibility. The organization specializes in providing loans to salaried individuals, but you may utilize the deal to fund your side business if you are a salaried individual with a side business.

Renmoney

Renmoney is a leading fintech startup that offers loans to businesses up to N4 million at a 4.9 percent interest rate. The repayment plans for the various loan categories vary, as do the loan kinds. Applicants can apply for a loan by visiting the website or phoning the number 0700 5000 500 to talk with a customer service representative. A six-month bank statement, a utility bill, and a recent passport photograph are required of applicants. It takes 24 hours for a loan application to be approved.

To qualify for a loan with Renmoney, you need to be between 22 to 59 years old, have a veritable source of income, live and work in cities where they operate, and have a savings or current bank account with any commercial bank. Once approved, the money will be paid into the account of the beneficiary as provided.  Applicants are expected to pay back loans within the stipulated time to enjoy favorable ratings and access a higher sum when applying next time.

Conclusion

While you can get loans for your unregistered business from these sites with no collateral, it’s a good idea to read their Terms & Conditions (T&C) before applying. The loan rate and payback term are also important factors to consider. As a business, you should avoid taking out loans with a short payback period unless you are certain you will repay the money quickly.

Linda Onyinyechukwu
Linda Onyinyechukwu
Linda Onyinyechukwu
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